225k views
4 votes
Your investment of $18,100 at 13.6% compounded quarterly for 7 1/2 years will be worth how much?

1 Answer

3 votes

Final answer:

The approximate future value is $52,533.60.

Step-by-step explanation:

To calculate the future value of an investment with compound interest, we can use the formula:

A = P(1 + r/n)^(nt)

Where:

  • A is the future value
  • P is the principal amount
  • r is the annual interest rate (in decimal form)
  • n is the number of times the interest is compounded per year
  • t is the number of years

Plugging in the given values from the question, we have:

A = 18100(1 + 0.136/4)^(4 * 7.5)

Calculating this gives us an approximate future value of $52,533.60.

User Vikas Dwivedi
by
8.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories